1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    The insurance company will compute this amount for you should it ever be necessary. Basically, it is the sum of premiums paid for the life insurance protection alone. This disregards the cost of riders. This basis would only be necessary if you surrender a policy and receive income in excess of your premium payments.
    Answered on October 9, 2014
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Cost basis is what you paid in premiums for your policy (minus any dividends that might have been paid to you). If you take out a withdrawal from your policy up to cost basis (what you paid into the policy), you will not have to pay taxes on it.
    Answered on October 10, 2014
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